Business Idea Controversy

[Psalmodius]

Hey,

So someone in my family has a really, really good idea to start a business – but no motivation to take the risk and no know-how to succeed. A friend of mine and I have the know-how and the motivation to put forth a couple years of work to get started.

Here’s the thing, if this succeeds, she wants 1/3 for having the idea and isn’t budging.

Do I just say no and don’t do it? Seems like a terrible plan when I really believe that, with a lot of work, I could make something very successful.

 

[TheRealJuliane]

So you want to take her idea and give her nothing for it?



Not a good idea.

 

[1ke]

You should talk to a lawyer. However, I don’t believe she has any standing to make a claim if you proceed with a business. She had an idea. She doesn’t have anything tangible. She has nothing she can copyright, patent, trademark, or sell. You and she have no agreement. If you do not have an NDA (non-disclosure agreement) or any other confidentiality agreement then the idea is in the public domain.

I really don’t see how you owe her anything. She has an “idea” she has no plans to act on. She plans to take none of the risk and wants a third of the business. She’s smoking crack.

 

[faithfully]

Hey,

So someone in my family has a really, really good idea to start a business – but no motivation to take the risk and no know-how to succeed. A friend of mine and I have the know-how and the motivation to put forth a couple years of work to get started.

Here’s the thing, if this succeeds, she wants 1/3 for having the idea and isn’t budging.

Do I just say no and don’t do it? Seems like a terrible plan when I really believe that, with a lot of work, I could make something very successful.

Is she willing to absorb a 1/3 of the loss if it fails?

Honestly, this is a good reason NOT to share your ideas with others. The facebook guys went through this… He still ended up owing…

This is family. You risk a LOT!

 

[StarFireKK]

You should talk to a lawyer. However, I don’t believe she has any standing to make a claim if you proceed with a business. She had an idea. She doesn’t have anything tangible. She has nothing she can copyright, patent, trademark, or sell. You and she have no agreement. If you do not have an NDA (non-disclosure agreement) or any other confidentiality agreement then the idea is in the public domain.

I really don’t see how you owe her anything. She has an “idea” she has no plans to act on. She plans to take none of the risk and wants a third of the business. She’s smoking crack.

Eh, that’s not strictly true. She’s a family member- it isn’t exactly public domain. Regardless if she has a legal cause of action, the OP admitted it was her idea. It would be dishonest to take her idea for nothing.

Talking to a lawyer isn’t a bad idea…it might help your family member understand exactly what her ideal is “worth.” On the other hand you can always try to “buy” the idea pointing out she would get some money now and wouldn’t be liable for losses. 1/3 is very high for just having the idea and not doing any work afterwards. Is there a way she could help out in the business?

 

[Psalmodius]

So you want to take her idea and give her nothing for it?



Not a good idea.

I did not say give her nothing. I said she wants to contribute no work and no money, then take a THIRD of the profits.

faithfully – the Facebook controversy had more than an idea, someone actually made an investment. There was an existing social network by twins, and another individual invested in a project for the creator. I think your last points hit home though. It’s not worth the loss of family to me. Money doesn’t buy some things.

 

[1ke]

Eh, that’s not strictly true. She’s a family member- it isn’t exactly public domain. Regardless if she has a legal cause of action, the OP admitted it was her idea. It would be dishonest to take her idea for nothing.

I disagree that it is not in the public domain and I disagree that it is dishonest to act on the idea.

 

[StarFireKK]

I disagree that it is not in the public domain and I disagree that it is dishonest to act on the idea.

Ok, you are certainly entitled to your opinion. Remind me not to brainstorm any ideas with you or worse yet tell you one.

 

[admonsta]

It sounds like it’s not a lost cause, though. What you need to do is work out exactly what is needed to get this thing off the ground, and then work out either:

A: the original inventor agrees to a lower but reasonable percentage, with no further (name removed by moderator)ut.

B: you work out some other involvement that they can have and agree to a 1/3 split.

If the relative does not agree to either of these, then you leave things for a while and try again later. With a little negotiation you may be able to convince your relative that 1/3 is quite high for just an initial idea. Also, I know from experience that it is best not to go into business with certain people. Be very careful about how this person is involved if they are not a good business person, and make sure everything is documented and agreed upon before embarking. Things can go horribly wrong, believe me.